China’s HNA Group has agreed to sell hotel company Radisson Holdings to Chinese hospitality giant Jin Jiang International Holding for an estimated US $2 billion, as HotelierMiddleEast.com previously reported.
HNA has been shedding assets to repay debts.
Bloomberg reports that Jin Jiang, which is controlled by the Shanghai government, also owns 12.3% of France’s Accor. The company also bought control of Indian chain Sarovar Hotels, following its acquisition of European hospitality provider Groupe du Louvre.
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The report further added: "Jin Jiang will pay Radisson Hospitality 35 Swedish kronor (US$3.89) a share to buy a 51.15% stake in Radisson Hospitality AB. Separately, Jin Jiang plans to purchase up to 18.5% of the listed company from HNA, and to launch a public tender for outstanding shares."
However, according to STR, this deal would make Jin Jiang the seventh-biggest hotel company in the world, with 344,000 rooms.
In June, Radisson commented on the possible sale of the company by HNA.
"While it has been widely reported that HNA has recently been exploring the sale of some of its assets, we are in a very strong place with our business and remain committed to our go-forward strategy," John Kidd, chief executive of Radisson’s operations in the Americas and Asia Pacific., said in a statement to Bloomberg.
"Any additional questions about a potential sale would need to be answered by HNA,” he added.
Radisson Hotel Group was acquired by HNA in 2016, when it was called Carlson Hotels. The Rezidor Hotel Group was recently renamed to Radisson Hospitality, following the rebrand of Carlson Rezidor Hotel Group to Radisson Hotel Group.